Image default
REGULATION

Ethereum Could Dive Below $225 Unless It Surges Past $235


Ethereum is currently correcting losses from the $228 low against the US Dollar. ETH must climb above the $235 resistance to start a fresh increase in the near term.

  • Ethereum is facing a couple of important hurdles near $235 and the 100 hourly simple moving average.
  • The current price action suggests high chances of more losses below $230.
  • There is a short-term declining channel forming with support near $230 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could decline heavily below $225 unless it surges past the $235 resistance zone.

Ethereum Price Might Resume Decline

After a strong decline below $235, Ethereum found support near the $228 level against the US Dollar. ETH price started an upside correction above the $230 level, but it is well below the 100 hourly simple moving average.

There was a break above the $232 level, plus the 23.6% Fib retracement level of the downward move from the $250 high to $228 low. However, the price is struggling to clear the $235 resistance (a multi-touch zone).

Ethereum price testing $230. Source: TradingView.com

The 100 hourly SMA is also near the $235 level to act as a resistance. It seems like there is a short-term declining channel forming with support near $230 on the hourly chart of ETH/USD. If the pair fails to stay above the channel support at $230, it could resume its decline.

The next support is near the $228 level, below which ether price might test the $225 support. Any further losses may perhaps spark a sharp decline below the $220 level in the near term.

Here Are Chances of Upside Break in ETH

The first major hurdle for Ethereum is near the $235 level. If there is an upside break above $235, the price could test the 50% Fib retracement level of the downward move from the $250 high to $228 low at $238.

If the bulls gain traction above the $235 and $238 resistance levels, ether might continue to rise. The next resistance is at $240, above which the price is likely to retest the $250 barrier.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is moving back into the bearish zone.

Hourly RSIThe RSI for ETH/USD is now well below the 40 level, with a bearish angle.

Major Support Level – $225

Major Resistance Level – $235

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.



Source link

Related posts

Telegram ‘Loses Big’ Against SEC on Cryptocurrency Case

admin

Bitcoin Price Plunge Stopped Right at 200 EMA, And It Means Recovery is Imminent

admin

South Korea Passes Landmark Legislation to Legalize and Regulate Cryptocurrency and Exchanges

admin

Leave a Comment